None can predict where oil prices will be tomorrow. But if you have been following the price trend during the past five months, you will notice that crude oil has found strong support around $50 a barrel.
At the time of writing, crude oil is trading at just under US$50 after the commodity broke the all-important $50 mark earlier last week, as reduced supply due to production cuts and increased demand expectations are taking hold.
Oil prices are extending their recent slide, and highly leveraged producers are taking a beating as a result. Let's look at Baytex Energy Corp. (TSX:BTE)(NYSE:BTE) to see if the sell-off might be an opportunity to start a contrarian position in the stock.